Where Is All the Easy Money Going?
by Nick Hodge
Publisher’s Note: The new episode of Bizarro World is out. In it, we crown the Holy Trinity of easy money: relief, stimulus, and infrastructure. We also point out where that easy money is going and how you can put it to use for you… by buying the commodities, cryptos, and cannabis stocks that are inflating as a result. And we name names! Full episode here. Excerpt below.
Enjoy.
Nick Hodge
Editor, Daily Profit Cycle
Gerardo Del Real: We have the Holy Trinity of easy money, right?
We have Mr. Biden and we'll get to him and his economy and what that's going to look like. It's starting to take shape. It's not very different, frankly, than Mr. Trump's thus far.
But then you have Janet Yellen and you have good old Jerome, and you know how he feels, not thinking about raising any rates anytime soon.
Let's get to the multiple policy items that will affect the economy, that will affect rates, the financial markets, and will really affect — and I think wake up — the part of the financial landscape that I navigate in, which is specifically resource stocks.
The $1.9 trillion seems like it is a go. That's supposedly relief, right?
And then after relief, we're going to get infrastructure.
And it seems both sides — and this was the case with Mr. Trump in office as well — it seems both sides are actually in support of a pretty hefty infrastructure package in the trillions, at least a trillion. And so $1.9 trillion within the next couple of weeks, then another trillion or two for infrastructure.
I don't think it's a coincidence that copper's back at the $3.60 level. And if I had to pick, and I do, a commodity that will be a lot higher this time next year, I think copper is a prime candidate.
Nick Hodge: No doubt. We've talked about Rio Tinto on this podcast. You’ve got to take a look at Freeport. And then of course, juniors that we might talk about later in this podcast that are exploring for the next round of copper assets.
But that's right there as a clean tech metal. And you talk about Bidenomics or whatever, if we're going to do this cleantech thing, yeah, you need the copper as much as you need the nickel and the lithium and the manganese, right?
Gerardo Del Real: Absolutely. Commodity bull market in damn near everything is what I think people can expect.
And you highlighted why, obviously, the very real inflation that's going to trickle down.
Reagan was a big trickle down economics guy, and we know that didn't work.
But what will work is the government's hell-bent policy of stoking inflation. We know it's here. We know it is trickling down to many sectors.
And we know eventually, the Fed will have its way and government will have its way, and they'll suppress that yield curve and they'll light the match again to the gold price
It's time to be accumulating.
Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
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